Energy Production in Tunisia Faces Challenges
The production of energy in Tunisia is experiencing difficulties. According to the National Observatory of Energy and Mines, by the end of June 2024, production had reached 1.9 million tons of oil equivalent (tep), including the Algerian gas royalty. This represents a significant 15% decrease year-over-year.
To put this into perspective, one tep is equivalent to:
- 1,616 kg of coal
- 1,069 m³ of gas
- 954 kg of motor fuel
- 11.6 MWh of electricity
This decline is primarily due to a struggling national production, with both oil (-12% to 711,000 tep) and natural gas (-28% to 607,000 tep) experiencing significant decreases.
On the other hand, demand continues to rise, with a 2% increase to 2.219 million tep for petroleum products, and a 3% decrease to 2.079 million tep for natural gas. Gasoline consumption has increased by 14% year-over-year, while diesel consumption has risen by 4%. A better tourist season has also driven up demand for kerosene by 7% compared to the first six months of 2023.
As a result, taking into account the royalty on the Algerian gas pipeline, the deficit has reached 2.418 million tep, a 16% increase compared to June 2023. This has led to a greater reliance on electricity imports, primarily from Algeria. Tunisia's energy independence has therefore decreased to 44% by the end of June 2024, compared to 52% the previous year.
This is a worrying trend, as this energy gap forces us to import more and therefore worsen our trade deficit and absorb precious foreign currency. In dinars, this deficit is valued at 5,536 Mtnd by the end of the first half of 2024, compared to 4,287 Mtnd over the same period in 2023.
Part of the reason for this decline is the revision of exploitation policies by international companies seeking to decarbonize. However, there are also specific reasons unique to Tunisia, including prior social movements at production sites, which have led several international companies to leave the country permanently. We are paying, and will continue to pay, the price for the central administration's laxity in the pre-Covid years.
